"One way of addressing the issue of scale that is often a limiting factor for rural investment is the development of funds that target mid-tier investments. The recent wave of Rural Business Investment Companies (RBICs) is a good example," McKenna writes. "Their charters limit their investments to rural-based businesses and their typical investment slice has been in the $1-5-million range. Another tool is a fund of funds approach, where many small funds are brought together by institutions as way of allowing their customers to obtain the diversity and scale that is denied them in more targeted funds."
If rural small businesses don't have more access to capital in the future, McKenna warns, rural America will continue to lag behind the rest of the nation's prosperity.